Tag Brazil political coalition

President Dilma Rousseff struggled on Thursday to move on from one of the most embarrassing political defeats of her year-old government, a case that illustrates how gridlock in Brazil’s capital is dragging down the economy.

The Senate voted late on Wednesday to reject Rousseff’s preferred candidate to head the ANTT national land transport agency, which is responsible for a host of critical road and rail infrastructure projects as Brazil prepares to host the 2014 World Cup and 2016 Olympics.

The vote was by secret ballot, but the loss in a chamber where Rousseff enjoys a sizeable majority – at least on paper – clearly indicated a rebellion by members of her 17-party coalition, many of whom are upset about government-imposed cuts to their discretionary funds.

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Brazilian sports minister Orlando Silva speaks to the press at a media briefing ahead of the Preliminary Draw of the 2014 FIFA World Cup on July 29, 2011 in Rio de Janeiro, Brazil. (Getty Images)

Brazil’s sports minister will resign on Wednesday over a corruption scandal, senior government sources said, reviving concern over President Dilma Rousseff’s unstable ruling coalition and the country’s lagging preparations for the 2014 World Cup.

Orlando Silva would be the sixth minister to step down this year and the fifth to be forced out over ethics breaches that have become a major headache for Rousseff in her first year in office, though the resignations have bolstered her reputation as a no-nonsense manager who is tough on corruption.

Silva has strenuously denied a stream of allegations against him in the media, including that he arranged up to 40 million reais ($23 million) in kickbacks from government contracts to benefit himself and the Communist Party of Brazil, which is part of Rousseff’s government.

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Brazil’s sports minister is expected to resign on Wednesday over a corruption scandal, government sources said, reviving concern over President Dilma Rousseff’s unstable ruling coalition and the country’s lagging preparations for the 2014 World Cup.

Orlando Silva would be the sixth minister to step down this year and the fifth to be forced out over ethics breaches that have become a major headache for Rousseff in her first year in office, though the resignations have bolstered her reputation as a no-nonsense manager who is tough on corruption.

Silva has strenuously denied a stream of allegations against him in the media, including that he arranged up to 40 million reais ($23 million) in kickbacks from government contracts to benefit himself and the Communist Party of Brazil, which is part of Rousseff’s government.